FINANCIAL MANAGEMENT

Financial Management, Statistical Analysis, and Decision-making

Financial Management, Statistical Analysis, and Decision-making

Problem Description

Today, business managers in the industry attempt to interpret quantitative and qualitative industry statistical data in an effort to make better-informed business decisions. Managers in the industry face very common business related problems. These problems include having to maintain a constant awareness of the global and regional trends in the industry, identifying potential future market opportunities, the need for benchmarking standards of performance, the need to effectively leverage service advantages, and finally the need to adapt purchasing, planning, and negotiating strategies that are affected by consumer and market trends. Continental Airlines has recently implemented a research strategy that focuses on collecting and interpreting trend and market statistical data in a timely way in an attempt to improve the speed and accuracy of business decision-making. The cost of failing to address these problems meant declining profits for the airline.

Research Methodology

In 2004, Continental Airlines incorporated speech analytic technologies into its research methodology of collecting statistical data. This data has proven essential in making timely and effective business decisions. This new technology allowed the company to better interpret industry trends in a timelier manner, which improved the cost savings for the company. Continental's new "CallMiner" system replaced its outdated process of collecting statistical data manually and improved its "Call Mix Survey" process, which collected and tabulated detailed information on incoming calls to reservation agents. CallMiner automation allowed management the ability to review a much larger sampling of interactions with its reservations department and resulted in an improved ability to make better-informed marketing and business decisions. Data-mining and trend-mining methodologies provided Continental Airlines the ability to qualify and quantify, on a daily basis, the variables and metrics it would use in data collection and improved decision making within the company.

Quantitative and Qualitative Tools

Continental Airlines has realized increased benefits from combining speech analytic research methodologies with the traditional gathering of quantitative and qualitative market and trend data. Collecting quantitative data through airport performance reports, flight ratings reports, and flight route reports for example allow the airline to make better quantifiable decisions with respect to operational efficiencies and provides for better route planning that benefits the company. Qualitative feedback from the Callminer system allows the airline to make better decisions relating to the quality of customer service provided by the company.

Cost/Benefit Analysis

Cost/Benefit Analysis Decision-MakingWorking in a business for profit environment making decisions and ...